Economic Systems, Features & Goals of Us Economy
15
1 Economic Systems Economic Systems SECTION 1: Types of Economic Systems SECTION 2: Features of the U.S. Economy SECTION 3: The U.S. Economy at Work CHAPTER 2
-
Upload
anon-583057 -
Category
Documents
-
view
10.132 -
download
0
Transcript of Economic Systems, Features & Goals of Us Economy
1
Economic SystemsEconomic SystemsSECTION 1: Types of Economic Systems
SECTION 2: Features of the U.S. Economy
SECTION 3: The U.S. Economy at Work
CHAPTER 2
2
Objectives:Objectives:How are the three basic economic questions
answered in traditional, command, and market economies?
What are the roles of self-interest and incentives in a market economy?
What types of mixed economies exist today?
Types of Economic SystemsTypes of Economic SystemsSECTION 1
3
How the three basic economic questions How the three basic economic questions are answered in various economies:are answered in various economies: Traditional economy
what to produce determined by tradition how to produce determined by custom for whom to produce determined by the number of
members in the society Command economy—answers to all questions
determined by government officials Market economy—answers to all questions
determined by individuals
SECTION 1
Types of Economic SystemsTypes of Economic Systems
4
Roles of self-interest and incentives in Roles of self-interest and incentives in a market economy:a market economy:Self-interest drives people to fulfill their
needs and wants and helps the market grow. Incentives help people decide which
economic choices are in their self-interest.
SECTION 1
Types of Economic SystemsTypes of Economic Systems
5
Types of mixed economies currently Types of mixed economies currently in existence:in existence:authoritarian socialismcapitalismdemocratic socialism
SECTION 1
Types of Economic SystemsTypes of Economic Systems
6
Objectives:Objectives:What are the basic principles of free
enterprise in the United States?What are the two markets of the circular-
flow model?How does the circular-flow model reflect
exchange?
Features of the U.S. EconomyFeatures of the U.S. Economy
SECTION 2
7
Basic principles of free enterprise in Basic principles of free enterprise in the United States:the United States: freedom to own private property and enter into
contracts freedom to make choices freedom to engage in economic competition freedom to make decisions based on self-interest freedom to participate in the economy with limited
government involvement and regulation
SECTION 2
Features of the U.S. EconomyFeatures of the U.S. Economy
8
Two markets of the circular-flow Two markets of the circular-flow model:model:product market resource market
SECTION 2
Features of the U.S. EconomyFeatures of the U.S. Economy
9
How the circular-flow model reflects How the circular-flow model reflects exchange:exchange: shows the flow of resources and products to
businesses and the governmentdisplays the flow of payments to individuals
SECTION 2
Features of the U.S. EconomyFeatures of the U.S. Economy
10
Objectives:Objectives:How do nations decide how to use scarce
resources?What are the major goals of U.S. economic
policy?Why do economic goals sometimes conflict?
The U.S. Economy at WorkThe U.S. Economy at WorkSECTION 3
11
How nations decide how to use scarce How nations decide how to use scarce resources: resources: Households, businesses, and the government
work together to set goals.
The U.S. Economy at WorkThe U.S. Economy at WorkSECTION 3
12
Major goals of U.S. economic policy:Major goals of U.S. economic policy: freedomefficiencyequity security stabilitygrowth
SECTION 3
The U.S. Economy at WorkThe U.S. Economy at Work
13
Why economic goals sometimes Why economic goals sometimes conflict:conflict:differences in the goals of various
socioeconomic groupsdifferences in how to achieve goals
SECTION 3
The U.S. Economy at WorkThe U.S. Economy at Work
14
1.1. How does the U.S. economic system compare to traditional and command economic systems?
2.2. In which category of mixed economic systems does the U.S. fit? Explain your answer.
3.3. Give an example of a traditional economic system. What are the consequences to an individual consumer who enters into a contract?
4.4. What are the economic principles of private property and voluntary exchange?
Wrap-UpWrap-Up
CHAPTER 2
15
5.5. What are the goals of U.S. economic policy?
6.6. Why are scarcity and choice basic economic problems?
Wrap-UpWrap-Up
CHAPTER 2
